BEAM – Japan’s Suntory to Buy Jim Beam Parent in $16B Deal

by Christopher Freeburn | January 13, 2014 10:12 am

BEAM – Japan’s Suntory to Buy Jim Beam Parent in $16B Deal

JimBeam BEAM   Japan's Suntory to Buy Jim Beam Parent in $16B Deal[1]A Japanese liquor company says it will purchase[2] Illinois-based Beam (BEAM[3]), sending BEAM stock soaring more than 24% in Monday morning trading.

Under the deal, valued at $16 billion, closely-held Suntory Holdings will pay $83.50 a share for BEAM stock, a 25% premium over the last closing price for BEAM shares. The combination of Suntory and Beam will form the third-largest high-end liquor company in the world, Bloomberg notes.

Suntory had reportedly contemplated a 2012 bid for BEAM in partnership with Diageo (DEO[4]), but did not more forward with the joint bid for the maker of Jim Beam liquor.

By acquiring BEAM, Suntory is looking to bolster its reach outside of its home market of Japan. Suntory will see its U.S. market share rise from less than 1% to 11% by purchasing BEAM.

The deal marks the sixth biggest beverage industry acquisition.

Last week, Diageo partnered with musician Sean Combs to purchase[5] ultra-high end drink-maker DeLeón Tequilia.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/05/JimBeam.jpg
  2. says it will purchase: http://mobile.bloomberg.com/news/2014-01-13/suntory-to-acquire-beam-for-16-billion-to-gain-maker-s-mark.html
  3. BEAM: http://studio-5.financialcontent.com/investplace/quote?Symbol=BEAM
  4. DEO: http://studio-5.financialcontent.com/investplace/quote?Symbol=DEO
  5. partnered with musician Sean Combs to purchase: http://investorplace.com/2014/01/sean-combs-diageo-deleon-tequilia/#.UtQB-nm1Kf0

Source URL: http://investorplace.com/2014/01/beam-japans-suntory-buy-jim-beam-parent-16b-deal/
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